20-03-2014, 10:36 AM
PRESENTATION ON THE PAYMENT OF GRATUITY ACT, 1972
Applicability
Every factory, mine, oil plantation, port and railway company
Every shop or establishment – if it employs 10 or more persons in the preceding 1 year.
To any other establishment – employing 10 or more persons.
Payment of Gratuity
Gratuity is payable if there is :-
Continuous service of 5yrs (not necessary incase of death or disablement)
On termination due to superannuation or retirement
Resignation, death or disablement due to accident or disease
In case of death, the amount will be paid to nominee or legal heir
Determination, application and notice for payment of gratuity
As soon as gratuity becomes payable, employer must determine the gratuity even before application is made and must send notice to person to whom it is payable.
Within 15 days of receipt of application, employer shall,
If claim is admissible, send notice within 30 days
If claim is inadmissible, send notice on form ‘M’
To be paid within 30 days from the date it becomes payable
If not paid within 30 days, simple interest from the payable date to paid date.
No interest if delay is due to employees fault
Nominations
To be made after completion of 1 years service. Form F
An employee may in his nomination, distribute the amount of gratuity payable to him, under this Act amongst more than one nominee.
If an employee has a family at the time of nomination, the nomination shall be made in favor of one or more members of his family, and any nomination made by such employee in favor of a person who is not a member of his family, shall be void.
If at the time of making a nomination the employee has no family, the nomination may be made in favor of any person but if the employee subsequently acquires a family (Form ‘G’), such nomination shall become invalid.
A nomination may, be modified by an employee at any time, after giving to his employer a written notice in such form and in such manner as may be prescribed, of his intention to do so. Form ‘H’
Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent by the employee to his employer, who shall keep the same in his safe custody.
Applicability
Every factory, mine, oil plantation, port and railway company
Every shop or establishment – if it employs 10 or more persons in the preceding 1 year.
To any other establishment – employing 10 or more persons.
Payment of Gratuity
Gratuity is payable if there is :-
Continuous service of 5yrs (not necessary incase of death or disablement)
On termination due to superannuation or retirement
Resignation, death or disablement due to accident or disease
In case of death, the amount will be paid to nominee or legal heir
Determination, application and notice for payment of gratuity
As soon as gratuity becomes payable, employer must determine the gratuity even before application is made and must send notice to person to whom it is payable.
Within 15 days of receipt of application, employer shall,
If claim is admissible, send notice within 30 days
If claim is inadmissible, send notice on form ‘M’
To be paid within 30 days from the date it becomes payable
If not paid within 30 days, simple interest from the payable date to paid date.
No interest if delay is due to employees fault
Nominations
To be made after completion of 1 years service. Form F
An employee may in his nomination, distribute the amount of gratuity payable to him, under this Act amongst more than one nominee.
If an employee has a family at the time of nomination, the nomination shall be made in favor of one or more members of his family, and any nomination made by such employee in favor of a person who is not a member of his family, shall be void.
If at the time of making a nomination the employee has no family, the nomination may be made in favor of any person but if the employee subsequently acquires a family (Form ‘G’), such nomination shall become invalid.
A nomination may, be modified by an employee at any time, after giving to his employer a written notice in such form and in such manner as may be prescribed, of his intention to do so. Form ‘H’
Every nomination, fresh nomination or alteration of nomination, as the case may be, shall be sent by the employee to his employer, who shall keep the same in his safe custody.